Financial Management

Interview: What Finance for the Arts in Canada can do for you!

This past summer, Heather Young attended the PACT conference in Nova Scotia, and ran into arts administrator Alan Wrenshall, who shared how much they enjoyed Heather's Finance for the Arts in Canada books! Alan was kind of enough to answer some questions we sent their way - enjoy!


Tell us a bit about yourself, and your arts administration role!

Alan Wrenshaw (left) and Heather Young at the 2025 PACT conference

My name is Alan Wrenshall (they/them) and I am a Queer, neurodivergent arts administrator for theatre, currently working as the Managing Director of Playwrights' Workshop Montréal. Founded in 1963, PWM is a nationally-mandated play development centre devoted to exploring and advancing artistic practices that support the creation of new works. To give you a sense of scale, in an average year, PWM collaborates with 250 artists and supports the development of more than 70 new works or translations.

Like many arts admin before me, I began my career in theatre as a Stage Manager, working behind the scenes on productions across Ontario. I gained invaluable experience and skills as an SM and loved being part of the creation process, but when Covid hit I briefly left the arts. Theatre kept calling me back though, and I moved to Montéal to join PWM’s administration team as a Coordinator. The previous MD left shortly after I started, and with the support of the rest of the team, I was able to take on the role. I'm incredibly grateful for the whirlwind opportunity that brought me here and the projects and artists we've been able to collaborate with.

Why did you purchase "Finance for the Arts in Canada," and how has the book met that initial need? Do you think it might be of use to others?

As a Stage Manager turned arts admin, my experience with budgets and finances before getting into arts admin was limited to say the least. Despite taking (most of) an accounting course in University, I did not have training in business. I knew the basics, but, in reality, the biggest budget I'd had to manage up to that point was for one production at a time. If Stage Managing taught me anything, though, it was how to be resourceful in finding information. The toughest part for me was sorting through all of the information that doesn't quite apply to arts nonprofits in Canada. Heather Young's Finance for the Arts in Canada was recommended to me by someone who had worked in my role previously to help me round out my knowledge and skills. 

Which section or concept in the book did you find most valuable or impactful?

For me, the sections that Heather included on understanding more about Accounting principles and financial documents were the most helpful. Sections such as detailing what a trial balance is, or how the purpose of the balance sheet differs from that of the income statement, or what information you get from a statement of cash flow. Coming into the role I felt comfortable with budget tracking and planning, but having a resource that helped me understand the context for why the accounting processes are the way they are, and the different information they are collecting or intended to explain gave me a much more fulsome ability to engage with that part of my job. 

Who would you recommend read this book, and find it useful?

I recommend this book to anyone who has taken on an arts leadership role and is stepping out of their comfort-zone working with running a business, or finances and accounting. I know that there are other new arts leaders out there that come from an artistic background with minimal finance experience, but want to learn. Concepts are explained clearly and thoughtfully. Even for topics you feel comfortable with, it's a great resource to be able to refer back to. It felt like being able to ask my bookkeeper questions without flooding her inbox, and gave me a better vocabulary for speaking with the auditor and my Board. I think it's useful information for anyone!


Many thanks to Alan for sharing their perspective with us!

You can learn more about Finance for the Arts in Canada here: youngassociates.ca/explore-book

ONN Blog: Navigating a "Canada First" Investment Strategy

With ongoing trade tensions, many Canadian organizations are looking to support the home team, and charities — especially foundations — have a unique opportunity to do so through their investment portfolios. But is a "Canada First" investment strategy actually allowed? Turns out, there are some interesting legal hoops to consider, mainly around prioritizing returns versus furthering the charity's overall goals.

Navigating these complex investment decisions requires a nuanced understanding of both financial and ethical considerations. You can further explore how to align your investments with your values and legal charity requirements on the ONN Blog, “Canada First investing for charities and foundations in Ontario: Is it even allowed?” by Benjamin Miller.

Young Associates can provide expert guidance when it comes to getting a handle on your finances and cash flow and making the decision to invest. To delve deeper into financial planning for the arts, check out Finance for the Arts in Canada.

Tis the season (for grant deadlines)!

With grant deadlines galore falling in the winter and early spring, many arts managers are poring over budgets and reports for funders – while at the same time juggling the demands of artistic programming in full swing.

These can feel like “weeks of reckoning” where you’re justifying your existence to grantors while working like crazy to maximize today’s successes.

If you’re run off your feet and wondering why you chose this crazy business, check out this short excerpt from Finance for the Arts in Canada, which may help provide some perspective on budgeting an the real world:

The ability to stick to a budget is held as an important benchmark: it’s senseless to invest a lot of time and energy into a plan that’s going to be discarded the moment things change. However, rigid management stifles creativity, and extreme meticulousness can produce needless bureaucracy. The degree of rigour beneficial to a given company depends on factors such as its size and complexity, the risk inherent in its programming (e.g., a choreographic workshop or artist-run centre may need more flexibility than a classical ballet company or major art museum), the skill level of decision-makers, and the attitudes and preferences of the leadership.

Managers are expected to know how to implement a budget (that is, to follow the script, as it were, by setting activities in motion, making the planned purchases and generating the targeted revenues). A complementary expectation is that managers will have the “chops” to manage change while maintaining stability. No year goes fully according to plan — not ever! When confronted by the unexpected, leaders are expected to step up and decide what to do next. These expectations, by the way, come from all directions. Volunteer board members look to paid managers for expertise. Senior staff look to the director for coordination, and more junior staff to managers for specific instruction on what to do.

When you take on a financial management role, you agree not only to balance the demands of a script (your budget) against the exigencies of daily life (the improv element), but also to do so while responding to the expectations of colleagues, your employer (the board) and perhaps other stakeholders. With so many factors at play, it is clear that to thrive, an organization needs more than a skilled manager, it needs recognized and shared processes that provide a framework for adapting to circumstances. In the absence of functional collaboration amongst staff members and between the board and staff, the best financial manager can be thwarted. A productive combination of smarts and structure equips the organization to move forward. An outcome may differ from expectations, but if there’s general agreement that contingencies were handled as well as possible, then the result may be considered a success.

From Finance for the Arts in Canada, Volume 2: Financial Management; Chapter 4: Managing Successfully Throughout the Year

Top Compliance Issues from the CRA Charities Directorate

As part of the quarterly updates from the Charities Directorate, the CRA notes their top compliance issues from the 2023/24 year. We've summarized them here for you!

Books and records

Reason to educate - minor errors:

  • Non-material and/or unintentional errors and/or omissions in the books and records

  • Not having a travel log to support minor expenses

  • Not maintaining a copy of current governing documents

Examples of high-risk non-compliance:

  • Having no books and records available

  • Refusing to provide books and records

  • Committing culpable conduct (falsified books and records)

Official donation receipts

Reason to educate - missing minor elements:

  • A statement that it is an "official receipt for income tax purposes"

  • The place or locality where the receipt was issued

  • The name Canada Revenue Agency and the website address (canada.ca/charities-giving)

Examples of serious non-compliance:

  • Issuing falsified/fraudulent/inflated receipts

  • Issuing receipts for services

  • Lending registration number to other organizations

T3010 information return

Reason to educate - unintentional minor errors:

  • Allocating fundraising expenses to the wrong reporting line

  • Incorrectly reporting line 5010 “Total expenditures on management and administration”

Examples of intentional/serious errors:

  • Significant inaccuracies, beyond what is reasonably considered minor*

  • Willfully omitting information from the T3010 and/or financial statements

  • Failing to file a return as and when required (which results in a revocation for failure to file)

*Opportunities for the Disabled Foundation v MNR, 2016 FCA 94 at paras 50-51.

CRA typically addresses minor errors without an audit, through communications like education letters.

Audits tend to be reserved for situations where a high risk of potential non-compliance has been identified. CRA uses stronger corrective measures, such as sanctions or revocations, in cases of serious non-compliance.

If you’re concerned about the compliance of your books and records, read Finance for the Arts in Canada to learn all about best practices for keeping your books up to date and accurate.

Charity Oversight and Compliance in the News

A recent Toronto Star/Investigative Journalism Bureau article has revealed discrepancies between a Canadian cancer charity's claims about its charitable spending in its T3010 and its actual financial records. Mark Blumberg has shared his comments on the article, and offers further analysis on his website, CanadianCharityLaw.ca.

Blumberg notes that the Canada Revenue Agency (CRA) only audits a small fraction of charities each year—around 200—which limits the ability of the public to trust that issues are being effectively addressed. He also points out the CRA’s inability to publicly comment on its audits unless a charity faces penalties, suspension, or revocation. Even if the CRA audits a charity and finds no wrongdoing, they still cannot comment on the situation.

Blumberg urges charities to prioritize compliance and transparency to maintain public trust and avoid potential regulatory scrutiny.

Compliance and transparency arise from expertly managed internal systems that respond to regulatory requirements. 

Young Associates’ bookkeeping and payroll professionals can assist your organization in navigating the complexities of financial reporting and CRA compliance while supporting you and your board of directors in achieving best practices. .

To hone your financial statement reading skills, considering ordering a copy ofFinance for the Arts in Canada!

The Average vs the Median Revenue of Canadian Registered Charities

The Canadian charity sector is a diverse landscape, ranging from small, grassroots organizations to large, well-established institutions. While the sector is often perceived through the lens of a few high-profile organizations, the reality is that most charities operate on modest budgets. Despite their size, every charity, big or small, relies on sound financial management to ensure their sustainability and impact.

To gain a deeper understanding of the sector, it's essential to examine the average and median size of Canadian charities.

Mark Blumberg runs down the numbers for us in this recent article.

While the mean revenue provides an overall picture, it can be skewed by a few large organizations with exceptionally high revenues. A more accurate representation of the "typical" charity can be obtained by looking at the median revenue, which is less susceptible to outliers. By analyzing these metrics, we can better appreciate the diverse nature of the Canadian charity sector and the challenges and opportunities faced by organizations of all sizes.

Finance for the Arts in Canada can help you and your organization better understand your financial footing and maintain solid financial management.